Summary: Economic activity increased, with five districts reporting modest gains, two flat, and five declines. Uncertainty prevailed. As for labor, one district reported modest increases, six slight increases, three flat and two declines. Hiring was cautious, although turnover was reduced and applications increased. Some commentary on immigration impact on availability of labor. All twelve districts reported price increases, seven moderate and five as modest, citing tariffs.
Overall Economic Activity: Economic activity increased slightly from late May through early July, representing an improvement over the previous report. Five Districts reported slight or modest gains, five had flat activity, and the remaining two Districts noted modest declines. Uncertainty remained elevated, contributing to ongoing caution by businesses. Nonauto consumer spending declined in most Districts, softening slightly overall. Auto sales receded modestly on average. Tourism activity was mixed, manufacturing activity edged lower, and nonfinancial services activity was little changed on average. Loan volume increased slightly in most Districts. Construction activity slowed somewhat, and home sales were flat or little changed in most Districts. The outlook was neutral to slightly pessimistic, as only two Districts expected activity to increase. Labor Markets: Employment increased very slightly overall. One District noted modest increases, six reported slight increases, three no change, and two noted slight declines. Hiring remained generally cautious, attributed to economic and policy uncertainty. Labor availability improved for many employers, with further reductions in turnover rates and increased job applications. A growing number of Districts cited labor shortages in the skilled trades. Wages increased modestly overall, extending recent trends. Reports of layoffs were limited but somewhat more common among manufacturers. Prices: Prices increased across Districts, with seven characterizing price growth as moderate and five as modest. In all twelve Districts, businesses reported experiencing modest to pronounced input cost pressures related to tariffs, especially for raw materials. Rising insurance costs represented another widespread source of pricing pressure. Many firms passed on at least a portion of cost increases to consumers. Contacts in a wide range of industries expected cost pressures to remain elevated, increasing the likelihood that consumer prices will start to rise more rapidly by late summer. Limited Regional Comments:
New York: Economic activity continued to decline modestly as heightened uncertainty hindered decision-making. Chicago: Economic activity increased slightly. St. Louis: Economic activity has remained unchanged. 
